HomeMy WebLinkAbout2024-05-23-RB-min Minutes of the May 23, 2024 Retirement Board meeting:
Present: Robert Cunha,Joseph Foley, Carolyn Kosnoff,Alan Fields, Frederick Weiss, Michelle Malone &
James Condon
Absent: None
The Lexington Retirement Board met remotely through Zoom tele-conferencing. The Town Clerks Office
posted the meeting,which included the information for any interested party to join the call. Robert
Cunha,Joseph Foley,Alan Fields, Frederick Weiss, Carolyn Kosnoff,James Condon and Michelle Malone
were present for this meeting. Joseph Foley called the meeting to order at 8:30 am. Technical issues on
Zoom prevented Robert Cunha from speaking at this meeting.
The Board accepted the 053124 Warrant and the May payroll. The April minutes were reviewed and
approved. The Financial cashbooks were unavailable at the time of the meeting.
Joseph Foley reviewed the May agenda with all Board members and staff in attendance.
It was noted the Retirement Board received several distributions in April and May. An Angelo Gordon
distribution was received on 04/25/2024 for$209,529.00; a distribution from Fidelity Contra Fund was
received on 04/25/2024 for$22,856.30; a Golub Capital distribution on 04/29/2024 for$143,373.00;
and a Monroe Capital distribution on 05/23/2024 for$101,633.00.
The Board took a moment to welcome William Keefe, Executive Director of PERAC,to the meeting and
allow him to introduce himself as the new replacement to John Parsons. William gave an overview of
his career path and what led him to be the new Executive Director.
Michelle Malone updated the Board on her submission of the Annual Statement. It has been received
by PERAC and is set for review. She mentioned PERAC will begin the audit process in the Lexington
Retirement System beginning on May 31, 2024.
Jim Condon gave a brief update on the Annual Benefit Verification Form program. At the time of the
meeting,the office has received back 301 forms in the first 5 weeks of the program. There are 164 we
are waiting on to be returned. Second notices will go out to those retirees in early June.
Stephen MacLellan presented the Meketa update at 8:40 am. The portfolio balance as of April 30, 2024
was$228,676,510.00, down $7.1m for the previous month. Stephen cautioned us the market is in a
retreat mode now that US stock futures are being reported. Domestic equities took hit in April, down
4.8%, something we have not seen in recent months. Fidelity, Rhumbline, and KAR all posted negative
numbers for April. International and Global equities were down 1.8%and 2.5%for the month. As for 1St
Quarter 2024 performance, our portfolio was in the top 5%system wide. That main contributor is our
high holdings in the Domestic Equity sector. Our Fixed Income Assets continue to perform well. On the
International side, Matthews Pacific is reporting positive numbers for April, and looks to be on a
rebound. Wellington is holding at 2.7%YTD, despite being stagnant for some time. Stephen wrapped
up the portfolio update at 9:00 am.
Drew Guyette and Catherine Haviland presented the Angelo Gordon update at 9:01 am. As of this
meeting, Lexington is in harvesting mode of the strategy. AG recently made a distribution to Lexington
for$209,529.00. The Direct Lending Fund III is up 4.5%YTD and 10.4%over 1 year. Catherine updated
us the Fund I, II, and III have performed well and remain net positive. She basis this on research and
selectivity of the top borrowers available. Drew Guyette spoke briefly about the Lexington performance
in Fund III. The fund status is in harvesting, and the end of the Fund term is set for 09/30/2026. The
final Net IRR is 6.93%,which is higher than Lexington was promised. The weighted average coupon is at
11.8%, down from 14%. There is a Watchlist Investment for financial covenant investments,which is
considered the preventative maintenance bucket. It is comprised of 16% LMV and a weighted average
price at 86.2%. Catherine thanked the Board for the time to speak and wrapped up the presentation at
9:32 am.
At 9:35 am, Carolyn Kosnoff made a motion to adjourn the meeting at 9:35 am,which was seconded by
Frederick Weiss, and unanimously approved by Joseph Foley and Alan Fields.
The next Retirement Board meeting will be held on Thursday,June 27, 2024 at 8:30 am on Zoom.
Melissa Moesman from Fidelity Contrafund will present their review at 9:00 am.
Robert Cunha, Chairman Alan Fields, Appointed Member
Carolyn Kosnoff, Ex Officio Member Joseph Foley, Elected Member
Frederick Weiss, Appointed Member